Electronic message vendors Calastone and Origo say they don’t make a profit from platform re-registration business.
Speaking at the Money Marketing re-registration round table last week, Calastone UK sales executive director Phil Goffin says: ”We saw some time ago that we were not going to make money out of this, we were going to lose money. The investment in the technology and the work we have to do get to this position is much, much higher than what we will get in revenue, it is way out.”
Origo Financial Services managing director Paul Pettit says the firm has undertaken the project to help the industry rather than look to take a margin.
He says: ”This is nothing to do with making a profit, this is about helping the industry solve a problem and enable our shareholders to re-register assets effectively.”
Skandia UK managing director Peter Mann says: ”Sometimes one must invest money in things that have a smaller return for the good of consumer outcomes and that is what the re-registration project is all about. We have recognised that and that is why Skandia has invested heavily in this area.”